Wisconsin Needs Clear Regulations for Data Centers
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Wisconsin Needs Clear Regulations for Data Centers
- Milwaukee County Executive David Crowley emphasizes that Wisconsin must establish a clear regulatory framework for data centers, including requirements for them to pay 100% of their energy and grid upgrade costs.
- Crowley's stance comes as major technology companies like Microsoft, Meta, and Oracle are investing billions in building large-scale data centers across Wisconsin, with Microsoft's Fairwater campus in Mount Pleasant projected to be fully operational in early 2026.
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Wisconsin is experiencing a surge in data center development, driven by the increasing demand for AI and cloud computing. This has led to significant investments from tech giants such as Microsoft, Meta, and Oracle. Microsoft’s Fairwater campus in Mount Pleasant, for instance, is nearing full operation in early 2026, with an initial investment of $3.3 billion and an additional $4 billion committed for a second data center. Meta Platforms announced a $1 billion investment for a data center in Beaver Dam, and Oracle and Vantage are developing the $15 billion Stargate Campus in Port Washington.
However, this rapid expansion has sparked concerns among some Wisconsin residents and local officials regarding electricity costs, water usage, noise pollution, and the overall environmental impact. While data centers are projected to generate $16.5 billion in local spending and support thousands of jobs from 2024 to 2028, there’s a growing call for more stringent regulations.
Milwaukee County Executive David Crowley, a Democratic candidate for governor, has advocated for a clear regulatory framework. He believes data centers should be responsible for 100% of their energy costs and any necessary grid upgrades. Crowley also suggests that data centers should focus on utilizing 100% clean energy and potentially subsidize ratepayers’ costs to invest in clean energy infrastructure statewide. He has also stressed the importance of tying data center development to investments in renewable energy and requiring the use of union labor, project labor agreements, and community benefit agreements.
The Wisconsin Public Service Commission (PSC) currently regulates utilities that provide services to data centers but does not directly oversee data center development or operations. This regulatory gap has led some municipalities to consider temporary moratoriums on data center construction to allow time for establishing comprehensive regulations. Efforts to introduce state-level legislation, such as the Data Center Accountability Act, which aimed to address environmental standards and eliminate state and local subsidies, have not yet become law.